Why the $150 million Fiduciary Network lawsuit ‘could get very ugly’

December 23, 2018 by
Charles Paikert

The sale of Fiduciary Network, one of the industry’s first RIA aggregators that now has 14 high-quality RIAs with around $40 billion in combined AUM, turned out to be the (relatively) easy part.

The subsequent $150 million lawsuit brought by Mark Hurley against Emigrant Bank and several of its executives is likely to drag on for years, and won’t be for the faint of heart, say legal experts.

“This is a complex case that, if not settled sooner, could take at least several years to litigate,” says Corey Kupfer, an attorney specializing in RIAs. “As the case is based upon allegations of a series of alleged actions by Emigrant Bank to scare off buyers and suppress value, there will be a lot of discovery necessary to determine the facts that might support those claims.”

What’s more, Kupfer adds, “when you add the clear animosity between Howard Milstein [principal of Emigrant Bank] and Mark Hurley to the mix, this could get very ugly and drawn out.”